BAGHDAD: The Iraqi Parliament on Monday voted to lift financial sanctions on banks in the Kurdish region after private and government financial institutions accepted the authority of the Iraqi Central Bank and federal laws on the banking sector and control of funds to and from Iraq, lawmakers told Arab News.
The Kurdistan Regional Government (KRG) held a controversial referendum on independence in late September. Baghdad responded by imposing a series of punitive measures including stopping financial transactions between banks in the region and the Iraqi provinces.
The fourth months’-long sanctions deepened the economic crisis that has plagued the region for almost three years and led to a growing recession in wholesale markets in Baghdad.
Monday’s resolution stated that “the need for the previous (punitive) measures related to transactions with financial institutions in the Kurdistan Region taken by the Parliament has disappeared after the goal concerning the banks was achieved.”
“The resolution (the sanction) was taken by the Parliament as a response to the referendum, but now the KRG has confirmed its commitment to the laws and regulations of the Central Bank and the federal laws of money-laundering and money flowing to and from the region,” said Massoud Haider, a Kurdish federal lawmaker and a member of the parliamentary finance committee.
“The members of the (parliamentary finance) committee are convinced that keeping the sanction will encourage the black market and open the doors for terrorism organizations to take advantage of these markets to transfer money,” Haider said.
The resolution also obligates the Central Bank to monitor private and government banks operating in the region and deliver a monthly report to the parliamentary finance committee showing the level of commitment of these banks to federal laws and instructions of the Central Bank.
Baghdad has demanded the imposition of the authority of federal authorities in the region to ease the sanctions imposed since early October. Five joint technical committees were formed to agree on all pending issues between the two sides, including on oil, borders and airports, and to discuss mechanisms to impose the authority of the federal authorities on the region for the first time since 2003.
Kurdish lawmakers and finance experts told Arab News that the sanctions imposed by Baghdad had deeply affected the economy in the Kurdish region, paralyzed business transactions and stopped investment.
The parliamentary resolution will reduce pressure on the Kurdish region, which has been suffering from a serious shortage of funds due to the inability of the KRG to pay the salaries of government employees for more than two years because of financial and administrative corruption and the acquisition by a few families of oil and border crossings revenues.
“The resolution is bold and shows a breakthrough in relations between the KRG and Baghdad and will positively reflect on the economy in Kurdistan and Baghdad,” Bassim Antwan, an Iraqi finance expert, told Arab News.
“The sanctions have deeply impacted the economy in the region and caused huge money losses to private companies and people who invest in Kurdistan, and affected the prices of the real estate.
“Also, the economic recession which engulfed Kurdistan before the sanctions and intensified after that has extended to impact the wholesale markets in Baghdad and other provinces, and this resolution will revive these markets in hours,” Antwan said.
Iraqi Parliament eases financial sanctions on Kurdish region
Iraqi Parliament eases financial sanctions on Kurdish region
Israel’s settler movement takes victory lap as a sparse outpost becomes a settlement within a month
- Smotrich, who has been in charge of Israeli settlement policy for the past three years, has overseen an aggressive construction and expansion binge aimed at dismantling any remaining hopes of establishing a Palestinian state in the occupied West Bank
YATZIV SETTLEMENT, West Bank: Celebratory music blasting from loudspeakers mixed with the sounds of construction, almost drowning out calls to prayer from a mosque in the Palestinian town across this West Bank valley.
Orthodox Jewish women in colorful head coverings, with babies on their hips, shared platters of fresh vegetables as soldiers encircled the hilltop, keeping guard.
The scene Monday reflected the culmination of Israeli settlers’ long campaign to turn this site, overlooking the Palestinian town of Beit Sahour, into a settlement. Over the years, they fended off plans to build a hospital for Palestinian children on the land, always holding tight to the hope the land would one day become theirs.
That moment is now, they say.
Smotrich goes on settlement spree
After two decades of efforts, it took just a month for their new settlement, called “Yatziv,” to go from an unauthorized outpost of a few mobile homes to a fully recognized settlement. Fittingly, the new settlement’s name means “stable” in Hebrew.
“We are standing stable here in Israel,” Finance Minister and settler leader Bezalel Smotrich told The Associated Press at Monday’s inauguration ceremony. “We’re going to be here forever. We will never establish a Palestinian state here.”
With leaders like Smotrich holding key positions in Israel’s government and establishing close ties with the Trump administration, settlers are feeling the wind at their backs.
Smotrich, who has been in charge of Israeli settlement policy for the past three years, has overseen an aggressive construction and expansion binge aimed at dismantling any remaining hopes of establishing a Palestinian state in the occupied West Bank.
While most of the world considers the settlements illegal, their impact on the ground is clear, with Palestinians saying the ever-expanding construction hems them in and makes it nearly impossible to establish a viable independent state. The Palestinians seek the West Bank, captured by Israel in 1967, as part of a future state.
With Netanyahu and Trump, settlers feel emboldened
Settlers had long set their sights on the hilltop, thanks to its position in a line of settlements surrounding Jerusalem and because they said it was significant to Jewish history. But they put up the boxy prefab homes in November because days earlier, Palestinian attackers had stabbed an Israeli to death at a nearby junction.
The attack created an impetus to justify the settlement, the local settlement council chair, Yaron Rosenthal, told AP. With the election of Israel’s far-right government in late 2022, Trump’s return to office last year and the November attack, conditions were ripe for settlers to make their move, Rosenthal said.
“We understood that there was an opportunity,” he said. “But we didn’t know it would happen so quickly.”
“Now there is the right political constellation for this to happen.”
Smotrich announced approval of the outpost, along with 18 others, on Dec. 21. That capped 20 years of effort, said Nadia Matar, a settler activist.
“Shdema was nearly lost to us,” said Matar, using the name of an Israeli military base at the site. “What prevented that outcome was perseverance.”
Back in 2006, settlers were infuriated upon hearing that Israel’s government was in talks with the US to build a Palestinian children’s hospital on the land, said Hagit Ofran, a director at Peace Now, an anti-settlement watchdog group, especially as the US Agency for International Development was funding a “peace park” at the base of the hill.
The mayor of Beit Sahour urged the US Consulate to pressure Israel to begin hospital construction, while settlers began weekly demonstrations at the site calling on Israel to quash the project, according to consulate files obtained through WikiLeaks.
It was “interesting” that settlers had “no religious, legal, or ... security claim to that land,” wrote consulate staffer Matt Fuller at the time, in an email he shared with the AP. “They just don’t want the Palestinians to have it — and for a hospital no less — a hospital that would mean fewer permits for entry to Jerusalem for treatment.”
The hospital was never built. The site was converted into a military base after the Netanyahu government came to power in 2009. From there, settlers quickly established a foothold by creating makeshift cultural center at the site, putting on lectures, readings and exhibits
Speaking to the AP, Ehud Olmert, the Israeli prime minister at the time the hospital was under discussion, said that was the tipping point.
“Once it is military installation, it is easier than to change its status into a new outpost, a new settlement and so on,” he said.
Olmert said Netanyahu — who has served as prime minister nearly uninterrupted since then — was “committed to entirely different political directions from the ones that I had,” he said. “They didn’t think about cooperation with the Palestinians.”
Palestinians say the land is theirs
The continued legalization of settlements and spiking settler violence — which rose by 27 percent in 2025, according to Israel’s military — have cemented a fearful status quo for West Bank Palestinians.
The land now home to Yatziv was originally owned by Palestinians from Beit Sahour, said the town’s mayor, Elias Isseid.
“These lands have been owned by families from Beit Sahour since ancient times,” he said.
Isseid worries more land loss is to come. Yatziv is the latest in a line of Israeli settlements to pop up around Beit Sahour, all of which are connected by a main highway that runs to Jerusalem without entering Palestinian villages. The new settlement “poses a great danger to our children, our families,” he said.
A bypass road, complete with a new yellow gate, climbs up to Yatziv. The peace park stands empty.








